Jamaica has experienced healthy growth rates during the 1960s. The rate of growth used to be between 2% to 8% every year. However, a consistent growth rate was something, which the country was unable to maintain. There are a few perennial problems, which the country encounters.
They include high interest as well as inflation rates, trade deficit, internal debt and the unemployment. The problem of labor force productivity being less is also another limitation faced by Jamaica. All these limitations eventually upset the socio economic and political equilibrium of the country.
Trade liberalization as well as financial liberalization have impacted economic reform and employment in Jamaica. They have actually altered the norms governing the labor sector in the country. The prevailing situation in the labor market indicates the varying effects of economic reform and employment in Jamaica.
The nature in which the labor market in the country functions mainly depends on the supply as well as demand of labor in the current economy. Economic reforms should also take into consideration the judicious usage of the various factors of production and should allow creation of new employment opportunities in the country.
Economic reform has affected employment in Jamaica not only with regard to creation of job opportunities but also impacted the manner in which the constitution of employment takes place.
As a consequence of economic reform, employment opportunities suffered a discrimination in the labor market. It was observed that more employers preferred workers who were more educated. Economic reform pertaining to employment in Jamaica should be such that it ensures a consistent growth in the economy in addition to an enhancement of human capital as well as productivity of the workforce in the country.
Statistics reveal that during the period 1996 to 1999, negative rates of growth were recorded in the gross domestic product or the GDP. This period witnessed an unemployment rate of approximately 18%.
As a result of the debt crisis in the country, people who are willing to invest in the economy are unable to do so. In order to overcome the problem of debt crisis, some feel that prior to the sanction of loans, the government in Jamaica ought to introduce credit bureaus in the country. The establishment of credit bureaus would also create job opportunities for individuals. If the government establishes credit bureaus, the credibility of the debtor can be ascertained. By doing so, the government is being able to handle the problem of debt to a certain extent. Simultaneously, employment also engages people in some occupation. This would to some extent bring relief to the unemployed if not on a large scale at least the number of unemployed would decrease.
Last Updated on : 26th June 2013